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Sedaia [141]
3 years ago
7

11. Calculating the price elasticity of supply Deborah is a college student who lives in San Francisco and does some consulting

work for extra cash. At a wage of $30 per hour, she is willing to work 3 hours per week. At $50 per hour, she is willing to work 7 hours per week. Using the midpoint method, the elasticity of Deborah’s labor supply between the wages of $30 and $50 per hour is approximately , which means that Deborah’s supply of labor over this wage range is
Business
1 answer:
oksian1 [2.3K]3 years ago
7 0

Answer: 1.60

Explanation:

P1 = 30            

P2 =50

Q1 = 6            

Q2 = 16

Elasticity of supply:

=\frac{(7-3)}{(50-30)}\times\frac{(50+30)}{(7+3)}

=\frac{4}{20}\times\frac{80}{10}

= 1.60

Using the midpoint method, the elasticity of Deborah’s labor supply between the wages of $30 and $50 per hour is approximately 1.60, which means that Deborah’s supply of labor over this wage range is elastic.

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4 years ago
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Answer:

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4 years ago
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Answer:

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3 years ago
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4 years ago
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